February 2, 2021
I’m excited to share big news today — Pandion, the first parcel network designed for the unique challenges of e-commerce, is coming out of stealth mode. I’m thrilled to announce that we’ve closed a $4.9 million seed round led by Playground Global and Schematic Ventures, with participation from AME Cloud Ventures and Innovation Endeavors.
We’re grateful to our investors and early customers who’ve helped us reach this important milestone. The seed capital we’ve raised will be used to help grow the team and expand our ongoing customer pilots. We look forward to leveraging decades of experience with our investors in supply chain, manufacturing, e-commerce, and to draw on innovative thinking about how next-gen delivery management interfaces with the physical world.
When we decided to start Pandion, one thing was immediately clear: The infrastructure of e-commerce had still not caught up with the convenience and business proposition of online retail. Small parcel networks, which were designed in the 1980s, do not have sufficient capacity to meet the increased consumer demand of the digital age — and this often results in delayed packages and a poor customer experience. As a result, retailers are often unfairly asked to manage customer expectations and accept the inevitability of missed deliveries.
In contrast, Pandion is creating a next-generation delivery management system that leverages new technologies such as machine learning to avoid shipping delays and optimize delivery networks. Our team includes some of the country’s leading delivery and supply chain experts, with executives from best in breed companies such as Amazon, Walmart, FedEx, Macy’s, Accenture and Deloitte.
As a 20-plus-year veteran of the transportation and logistics industry, the last ten of which have been exclusively focused on e-commerce, it’s been clear to me for a long time that traditional providers for small package e-commerce delivery lack the ability to scale their capacity up or down as needed. There is a growing demand for a tech-enabled transportation solution built for e-commerce to deliver packages cheaper, faster, and more reliably.
The past year has only heightened the need for this kind of tech-enabled solution. According to a recent Mckinsey report, e-commerce penetration swelled from 16% to 34% of U.S. retail sales at the height of the pandemic, representing about 10 years’ growth in just 90 days. My firm belief is that traditional providers were already falling short of customer needs prior to the pandemic, and now these shipping and transportation providers are likely to face even more issues as the expectation of one- and two-day shipping increases.
Pandion’s technology is purpose-built for the demands of modern e-commerce and is the long-term scalable solution for capacity problems during peak periods. We’re excited about early customer feedback and providing fast, reliable delivery to small- and medium-sized businesses. If you’re interested in helping us build this future, contact us. If you think you’d like to inquire about using our shipping services and delighting your customers, we hope that you’ll get in touch.